How to Start a Home Remodeling Business: 6 Tips

As the median age of homes in the U.S. hits 40 years and interest rates remain high, many people are turning to remodeling to maintain the condition of their homes and make them better fit their lifestyles, Angi reports. If you’re ready to pursue entrepreneurship, learn more about how to start a home remodeling business, potential profitability, and why a franchise may be a better opportunity than independent ownership.

Is Home Remodeling Profitable?

The profitability of a home remodeling venture depends on your business acumen, location, and supply and labor costs. But as homeownership rates among millennials rise, the home remodeling industry is poised for growth – making a home remodeling business a potentially profitable opportunity.  

• Millennials passed baby boomers as the largest group of homebuyers in 2023 at 38%, versus 28% in 2022.
• The average household spent more than $9,500 on home improvement projects in 2023, up 12% from 2022.
• Over the next five years, 65% of homeowners plan to make a large investment in their home.

Franchising Simplifies the Startup Process

Learning how to start your own remodeling business involves juggling various elements, from operations and human resources to marketing and customer relations. With thorough planning and a commitment to quality, your business can establish a reputable presence in the remodeling industry. Partnering with a franchise like Bath Tune-Up can help streamline the process and provide proven strategies for success. The benefits of franchising, such as a proven brand and franchise network, can often outweigh starting from scratch.

Here are six tips to help you on your entrepreneurial journey:

1. Create a detailed financial plan: Your financial plan needs to include costs for materials, labor, marketing, and more. Having a plan helps prevent future cash flow issues. A franchise eliminates some of the financial guesswork involved in launching a business by providing a detailed overview of your initial investment, covering everything from operating costs and franchise fees to charges for insurance and marketing. The initial investment for a Bath Tune-Up starts around $105,000.* To help with upfront costs, Bath Tune-Up offers in-house financing to qualified candidates.
2. Specialize in a niche: Becoming an expert in one area of home remodeling helps you stand out from the competition and attract a targeted client base. Bath Tune-Up exclusively handles bathroom remodeling, which is a highly sought-after service. In 2024, 27% of homeowners plan to renovate a guest bathroom, and 25% want to upgrade their primary bathroom, according to Houzz.
3. Build a strong network: To be successful, it’s important to build a solid network of suppliers, customers, and fellow business owners. Having a good support system can help you weather challenges and generate word-of-mouth referrals. Franchisees have a built-in network of fellow business owners they can turn to for best practices and support.
4. Focus on marketing: As your business grows, you’ll be able to rely on word-of-mouth marketing to help generate new customer leads. But as you get started, you’ll need a comprehensive marketing strategy to generate leads. Use both traditional and online advertising. Attending local home shows and community events can also raise brand awareness. As part of a franchise brand, you receive support with national advertising, and guidance on local marketing to help promote your business.
5. Stay on top of consumer trends: The home remodeling industry is constantly evolving. Stay current with design trends, new materials, technology, and regulations. Being knowledgeable about the latest developments will help you offer relevant solutions to clients and stay competitive in the market. As a one-stop shop for our customers, Bath Tune-Up relies on both custom and curated designer-inspired collections consisting of sets of tiles, flooring, vanities, and finishes to streamline the design process.
6. Rely on technology: Turn to technology to improve operations and customer support. Design and visualization tools can give clients a full picture of the finished project and project management tools help you track each phase of a project to meet deadlines and stay within budget. Franchises spread technology costs across the system, allowing you to have up-to-date tools at a lower price tag.

Explore the Next Steps with Bath Tune-Up

Bath Tune-Up is part of the Home Franchise Concepts network of home services brands. Home Franchise Concepts has more than 30 years of experience in franchising and its franchise family includes 10 home services brands.

Starting a home remodeling business can be rewarding, especially with a franchise partner to offer training, support, and ongoing guidance. “The continued support after training school was equally as valuable as training school itself. Being able to work closely with the home office on a continued basis has allowed us to focus on the big picture of running a successful business,” said Tyler Smith, a Bath Tune-Up franchisee in Williamsburg, Virginia.

Inquire now to learn more about how to start a home remodeling business and how partnering with Bath Tune-Up can help you get started.

*See FDD for details.